Pakistan Economy - News & Updates - Archive

[Omar1984]

AJK PM seeks investment in minerals

Wednesday, February 25, 2009
By our correspondent

KARACHI: Prime Minister of Azad Jammu and Kashmir Sardar Mohammad Yaqoob Khan has said that the minerals industry has tremendous investment potential in the region as it has confirmed reserves worth Rs40.16 billion in the districts of Muzaffarabad, Mirpur and Kotli.

He said that the government had conducted a survey of these three regions recently following which they discovered that the region had 19 million tons of marble, 26 million tons of rubies and 70 million tons of limestone.

Khan was speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) the other day. Accompanied by his cabinet, he highlighted the investment opportunities in Azad Jammu & Kashmir and believed that the relationship between the business community of Pakistan and Azad Jammu and Kashmir is important and needs to blossom.

Khan urged investors and businessmen to concentrate on the minerals sector and said that there were four to five other sectors in which Pakistani businessmen could invest. He said that Muzaffarabad had a Reconstruction Opportunity Zone whereas Mirpur had established an export processing zone other than eight industrial estates in various other areas of AJK.

Khan informed the businessmen that there were empty plots in the eight industrial estates which could be purchased from the government at 25 per cent down payment with the remaining payment being adjusted over a period of 20 years.

He further stated that AJK can meet the electricity demand of Pakistan as there is 600 MW to 8000 MW hydel-generation potentials which have not been utilised as yet.

The PM shared that about 10-15 years ago, some companies had been given the letter of intent to start work towards this sector which had not yet been implemented. Khan warned that these companies should commence with their work soon otherwise their licenses would be cancelled.

AJK PM seeks investment in minerals

 

[Omar1984]

ICI posts 16pc growth despite effects of global recession

Wednesday, February 25, 2009
By By our correspondent

KARACHI: The calendar year 2009 might prove to be the most difficult year for corporate sector since World War-II across the world, where ICI Pakistan might also feel the heat of world economic recession and slowdown in local economy ahead.

This was stated by Director & Chief Financial Officer (CFO) ICI Pakistan, Feroz Rizvi, while briefing media on ‘ICI annual report of 2008’ here on Tuesday.

“We remained immune to recession somehow in the first three quarters of 2008 but in the last (fourth) quarter it filtered down affecting us,” he said adding, “After World War-II, this is the first time that western world went into recession.”

The growing energy deficit; higher interest rates, inflation and slowdown in domestic economic growth; rise of counterfeiting products; non-availability of gas in winter months to plants; and capping on pharmaceutical products’ prices would remain major challenges to ICI Pakistan in the year ahead.

Despite of facing some financial challenges in the last quarter, the ICI Pakistan posted a 16 per cent growth in its bottom line profits on year-on-year basis. The net earning for the year 2008 surged to Rs2.063 billion from Rs1.785 billion recorded in calendar year 2007. With this the earning per share stands at Rs14.91 for the under review period.The net sales income of Company grew by 21.5 per cent to Rs27.964 billion on year-on-year basis from Rs23.024 billion recorded in the corresponding lat year, said CFO-ICI.

Despite of some major challenges on economic front, the ICI Pakistan is determined to expand its Soda Ash business and would be producing about 350 thousand tons of Soda Ash by April 2009. The plant in progress of Soda Ash, which would become functional, would add another 65 thousand tons of the product, he added.

Responding to a query, he said that his company was exporting paints to Afghanistan; chemicals to Sri Lanka and Bangladesh and Soda Ash to Bangladesh. The Company has an aggressive plan to enhance its exports in the year to come.

The inflation is hovering around 25 per cent; the rupee has depreciated by 28 per cent versus greenback and GDP growth is likely to drop to 3.5 per cent in fiscal year 2009. Despite of this all, the ICI would keep its focus on manufacturing to remain leader in the market and might change its strategy ahead of next monetary policy of the State Bank.

Giving details of 2008 accounts, he said that operating results of Soda Ash increased by 41 per cent and Life Science increased by 21 per cent. These are the ever highest operating result in the history, he said and added, the polyester was up by 12 per cent over 2007.

He said that Financial Charges went up by 50 per cent. He added that salary, advertising and promotion expenses also went up. He said that on the cash side we have Rs2 billion in 2008 while in 2007 we had Rs3.6 billion.

The ICI has spent 7.6 billion on capital expenditure from 2003 till 2008, which is a substantial amount of money and shows company’s faith in the country, he said. The Company has achieved double digits growth in all the diversified sectors, he added.


ICI posts 16pc growth despite effects of global recession

 

[Neo]

Tarin pins hope on US reimbursing $1bn war on terror bill ​

Wednesday, February 25, 2009

ISLAMABAD: Pakistan’s budget deficit target of 4.2 per cent of GDP relies on Obama administration’s initiative for reimbursing $1 billion bill before June 30 for rendering military services against the Taliban and Al Qaeda supporters in tribal areas.

“We hope that the US will reimburse $1 billion military services bill before June 30, 2009 which will help Islamabad in achieving its envisaged fiscal deficit target of 4.2pc of GDP for ongoing fiscal year,” the Adviser to PM on Finance Shaukat Tarin said while talking to reporters after attending a meeting of the National Assembly Standing Committee on Finance here on Tuesday.

If the US does not provide the due $1 billion amount within this fiscal, it can result in hiking fiscal deficit target from 4.2pc of the GDP, equivalent to Rs562 billion for 2008-09 that was agreed by Islamabad with the International Monetary Fund (IMF).

Earlier, during the proceedings of the National Assembly Standing Committee on Finance, when parliamentarians asked how the government would manage its envisaged fiscal deficit target, Tarin replied the government would achieve its envisaged fiscal deficit target by obtaining $1 billion reimbursement bill from the US and collecting Rs100 billion through the Petroleum Development Levy during the current fiscal year.

It clearly shows that the government has no plan to provide relief to voiceless consumers by not passing on benefits of reduced prices of crude oil in international market to domestic consumers.

Shaukat Tarin, who is scheduled to hold two day policy level talks with the IMF authorities in Dubai from today (Wednesday), was of the view that the democratically elected government would not accept any proposal of the IMF, which would negatively impact the poor man of the country.

He hoped that Pakistan would achieve 3.5 per cent of the GDP growth target during the current fiscal year with improved performance of agriculture sector. However, the IMF authorities as well as independent economist believe that Islamabad’s GDP growth will remain hovering around 2.5 per cent of the GDP for 2008-09.

The Advisor gave clear hints for not having any plan to cut down POL products prices by the next month saying that the FBR’s target was facing shortfall by Rs20 billion per month and it could only be bridged through continuation of PDL in the remaining period of the ongoing fiscal year.

Referring to growing defence requirements, he said the border situation needed more resources and the government would make decision on it in due course of time.

He said that the FBR’s target of Rs1,360 billion did not seem feasible and it would be revised downward keeping in view various indicators of the economy especially inflationary pressure.

Tarin conceded that the rice growers remain unable to get their due prices and there was apprehension that the wheat growers could face the same situation owing to lack of storage capacity.

He said that the government would ensure Rs950 per 40/kg support price for farming community. He termed ensuring wheat support price to the farming community essential to encourage them grow more and make the country self-sufficient.

During the NA Standing Committee on Finance meeting, the Advisor said that the subsidy through Utility Stores Corporation (USC) was not targeting the poor of the country and desired results could not be achieved.

The Committee was of the view that the government has not so far taken sufficient measures to control inflation.

Tarin admitted before the committee that the government machinery failed to respond to the price hike. He said a proposal to the Federal Cabinet will be submitted under which district magistrates to get police assistance so that they can carryout raids on hoarders and profiteers, in this regards provinces would present their proposals soon.

A proposal is also being submitted to the federal Cabinet for creating buffer stocks of all major items in the country so that government is able to intervene in the open market for price stabilization. The Ministry of Finance was of the view that the government would continue to implement free market economy but cartelization would not be allowed to penetrate in order to bring down inflationary pressure.

 

[Neo]

‘No roadmap for economic drive’ ​

Businessmen say over $5bn foreign loans received, $2bn spent, yet no improvement in economic fundamentals, productivity, exports​

Wednesday, February 25, 2009

LAHORE: Businessmen are dismayed at the absence of any roadmap from the government to increase exports and widen the tax base that is the only way to narrow the current account and budget deficit without compromising development expenditure.

They appreciate the government effort to obtain foreign assistance to resolve immediate foreign currency issues in the form of loans from multilateral agencies like IMF, Asian Development Bank and the World Bank. However they are deeply concerned that influx of over $5 billion in the last three months has failed to improve economic fundamentals.

Leading engineering entrepreneur Almas Hyder regretted that the run on the foreign exchange reserves has not stopped. He said, “we have consumed over $2 billion of the foreign exchange we obtained from the donor agencies during past two months.”

He said this amount was not spent on increasing productivity or for establishing new industries, “rather it was consumed to honour the repayment commitments of the government that we were unable to generate from our own resources.” He said the foreign assistance would go down the drain if we continued to operate without a prudent economic plan.

A leading investor in value added textiles and construction Adil Butt said that the current account deficit could only be addressed by increasing exports and reducing all unnecessary imports.

He said the import regime is liberal beyond the WTO mandate. He said the government should revisit the import regimes of its competing economies like India, China, Bangladesh and Sri Lanka that have contained their imports with prudent regulations as protection against competitors. He said the Indians for instance allow import of fabric at 10 per cent duty or Rs120 per kg of fabric which ever is higher.

He said fabric from Pakistan, China, Bangladesh and Sri Lanka is priced at a dollar or little above per kg. The import duty on these fabrics would be over 250 per cent while for high cost fabrics from the US or Europe the Indians would charge 10 per cent duty. He said this way the imports from competing economies are effectively checked.

He said Pakistan charges 20 per cent duty of fabric and garments and its markets are flooded with imported textile items. He said similar clever measures have been incorporated in the Indian import regime to save their local industries from cheap imports. Pakistan should do the same he concluded.

An auto-parts exporter Syed Nabeel Hashmi said that all the provinces, cities and towns in the developed countries generate their own resources of income to perform their civic duties. He said property tax alone accounts for 10 per cent of the total tax collection in these countries. In Pakistan he regretted the property tax collection is less than one per cent of total tax revenues. He said all districts, towns and union councils would attain financial self sufficiency if only the property tax is collected honestly.

Leading knitwear export MI Khurram said it is a matter of great concern that only 2 per cent of the total population in Pakistan is under tax net. He said the entire society has been forced to resort to corrupt practices as the government tries to squeeze the tax compliant sector by levying more taxes.

He said the high cost of doing business in Pakistan has made the entire manufacturing sector of the country globally non-competitive. He said the country would have to go to IMF after brief periods if we fail to bring the tax avoiding sectors in to tax net. The government had should also come out with a viable strategy to increase exports.

 

[Neo]

‘Pakistan urgently needs $4-5bn’​

* Senator John Kerry says Senate bill for $7.5bn non-military aid to be tabled soon​

WASHINGTON: The United States and Europe must give Pakistan four to five billion dollars in urgent aid or risk seeing the nuclear-armed country slip into chaos, Democratic Senator John Kerry and Republican former senator Chuck Hagel said on Tuesday.

The senators, now chair of Atlantic Council think tank, were to release a formal report on Wednesday appealing for international help to stabilise Pakistan.

“If we fail, we face a truly frightening prospect: terrorist sanctuary, economic meltdown, and spiralling radicalism, all in a nation with 170 million inhabitants and a full arsenal of nuclear weapons,” Kerry said in a statement released by the council.

Kerry said he and Republican Senator Richard Lugar would soon introduce legislation aiming to provide Pakistan with $7.5 billion in non-military aid over five years.

The legislation, known as the Enhanced Partnership with Pakistan Act, would advocate the same amount – which would be triple current US levels of non-military aid – over the next five years, aides said.

The bill would make the aid available on the condition that the US secretary of state certifies that Pakistan’s security forces are making concerted efforts to prevent Al Qaeda, associated terrorist groups, and the Taliban, from operating from Pakistani territory.

The report entitled Needed: A Comprehensive US Policy Towards Pakistan, “calls for an additional $4-5 billion of immediate financial aid for Pakistan to avert an economic meltdown,” according to a statement from the council.

“Given the tools and the financing, Pakistan can turn back from the brink. But for that to happen, it needs help now,” according to the council.

The report “will assist the Obama administration as it develops and implements a comprehensive and strategic policy toward Pakistan and this combustible corner of the world,” according to Hagel. afp

 

[Neo]

Scope for Pakistan rate cuts if inflation falls: IMF ​

WASHINGTON ( February 25, 2009): Pakistan's monetary policy is appropriate but there would be room to lower interest rates if inflation declined, the International Monetary Fund said on Wednesday.

In a statement following a 12-day staff mission to review a $7.6 billion stand-by lending program, the IMF said it was "impressed" by Pakistan's resolve to sustain prudent policies, strengthen the social safety net and pursue reform.

But it also said the global economic turmoil was taking a toll on Pakistan's economy, hurting demand for exports and curbing remittances from workers abroad, so economic policies needed to be recalibrated.

The IMF said Pakistan's current monetary policy stance was "appropriate and will continue to promote domestic and external stability."

"Looking ahead ... if both headline and core inflation decline, there should be scope for lower rates," the IMF said.

 

[Neo]

New growth target to be negotiated with IMF: Tarin​

ISLAMABAD (February 25 2009): Pakistan would finalise next six months' economic strategy with the IMF mission in Dubai with plan to ease monetary policy, scaling down tax revenues and negotiate new growth target. This was stated by advisor to Prime Minister on Finance Shaukat Tarin just before leaving for Dubai. The Fund believes that 3.4 percent GDP growth target is not achievable now.

"The Fund is pressing to bring down GDP growth target from 3.4 percent, and we want to take a pragmatic view on everything", he said on his way to airport. He said he would also push the Fund staff to start easing monetary policy in the coming months as inflation data was coming down.

"Pakistan plans to ease tight monetary policy as part of next review in April", he said. Tarin said that tax target was also out of range now because of the changing economic conditions. "Off course, the tax target of Rs 1327 billion is not achievable, and we have to adjust it around Rs 1300 billion", he added.

Pakistan delegation, led by Dr Waqar Masood, is already in Dubai. Ut was joined by FBR Chairman Ahmed Waqar later. Tarin said: "We hope to secure IMF's second release of $750 million after the talks." "We will meet all other targets including budget deficit of 4.2 percent", he added.

This review would also be helpful in asking IMF to extend further $4.1 billion in addition to already given $7.6 billion standby arrangement. To achieve overall fiscal deficit target the government will continue to collect non-tax revenue through PDL (petroleum development levy) on POL products in the months to come. This means the government would not reduce the POL product prices at par with international prices.

 

[Neo]

Pakistan urgently needs 4-5 billion dollars: Kerry​

WASHINGTON (February 25 2009): The United States and Europe must give Pakistan 4-5 billion dollars in urgent aid or risk seeing the nuclear-armed country slip into chaos, two leading US foreign policy voices warned Tuesday. Democratic Senator John Kerry and Republican former senator Chuck Hagel, now chair of the Atlantic Council think tank, were to release a formal report on Wednesday appealing for international help to stabilise Pakistan.

"If we fail, we face a truly frightening prospect: Terrorist sanctuary, economic meltdown, and spiralling radicalism, all in a nation with 170 million inhabitants and a full arsenal of nuclear weapons," Kerry said in a statement released by the council.

Kerry, who chairs the Senate Foreign Relations Committee, said he and Republican Senator Richard Lugar would soon introduce legislation aiming to provide Pakistan with 7.5 billion dollars in non-military aid over five years. The legislation, known as the Enhanced Partnership with Pakistan Act, would advocate the same amount - which would be triple current US levels of non-military aid - over the next five years, aides said.

The bill would make the aid available on the condition that the US secretary of state certifies that Pakistan's security forces are making concerted efforts to prevent al Qaeda, associated terrorist groups, and the Taliban, from operating from Pakistani territory. The report entitled Needed: A Comprehensive US Policy Towards Pakistan, "calls for an additional 4-5 billion dollars of immediate financial aid for Pakistan to avert an economic meltdown," according to a statement from the council.

"Given the tools and the financing, Pakistan can turn back from the brink. But for that to happen, it needs help now," according to the council. The report "will assist the Obama administration as it develops and implements a comprehensive and strategic policy toward Pakistan and this combustible corner of the world," according to Hagel.

 

[Neo]

US to release $1 billion from accumulated Coalition Fund​

ISLAMABAD (February 25 2009): Advisor to Prime Minister on Finance, Shaukat Tarin on Tuesday said that the United State will soon release $1 billion from piled up Coalition Support Fund created for war on terrorism. Talking to mediamen after the meeting of National Assembly Standing Committee on Finance, Tarin said that one billion dollars from Coalition Support Fund will be received by June and that would help in reducing the budget deficit.

The US had not paid anything to Pakistan for last nine months for its services as coalition partner in war on terror, he added. The meeting was scheduled to take up the issue of essentials price hike. The meeting was told that wheat production could be in the vicinity of 25 million tons this year but the country lacked storage capacity.

The advisor blamed both the international market as well as weak domestic market mechanism for high prices of food commodities. He said that the revival of magistrate system is needed to control prices at wholesale and retail level. The ministry of finance estimates that inflation will be 20 percent by June this year, currently it is more than 23 percent.

Replying to a questions, Tarin said that interest rate would be reduced once the inflation is under control. We are trying to bring down the inflation to a single digit by the year-end, he added. He referred to some positive signs in this connection particularly the Consumer Price Index (CPI) which he said was moving downwards for last couple of months.

The advisor said he would be leaving for Dubai to attend the International Monetary Fund review meeting. Pakistan, he said would also take up the matter for enhancing of loan quota from 5 to 8 percent in the IMF board meeting in Washington this year.

Earlier, in the meeting the government admitted that farmers are not getting the agreed price of Rs 1500 for the paddy. The advisor said corruption in the offices was increasing financial woes of farmers. Rice farmers mainly in Punjab are being paid less for super Basmati paddy.

He feared that if the measures are not taken, wheat growers might face the same situation as the country expects bumper wheat crop this year. Tarin expressed dissatisfaction over the performance of Passco and TCP and said that these departments need revamping. He said that the government is following the policy of deregulation, but the official monitoring of prices is needed to control cartelisation.

The advisor vowed to bring down the core inflation to single digit by December this year from prevailing 18 percent. However, he said that growth rate of 3.4 percent can be achieved this year due to higher agriculture production, but said it may not be possible to achieve revenue target of Rs 1.36 trillion.

The revenue collection is declining and this may increase the budget deficit. Responding to a question by Fauzia Wahab, chairperson of the committee, as to why the government was not passing on the benefit of low oil prices to consumers, Tarin said it was because of revenue shortfall.

He said that collection in terms of Petroleum Development Levy (PDL) was Rs 12 billion whereas shortfall in revenue is Rs 20 billion. This does not give the window of opportunity to the government to reduce oil prices, he added. The Ministry of Food and Agriculture underlined the need of a well-defined strategy for all the crops during its presentation.

 

[Neo]

'Average growth in exports is 10 percent'​

ISLAMABAD (February 25 2009): Commerce Secretary Suleman Ghani said on Tuesday that export target fixed in Trade Policy 2008-09 was ambitious and average growth in exports is 10 percent. The Commerce ministry had set $22.1 billion export target for the current fiscal year envisaging 15 percent growth.

"Export target for the current fiscal year is ambitious but even then we have achieved 49.3 percent of the target during the first seven months (July-January)," he told Business Recorder. Exports achieved 52 percent of their target during the same period of last financial year.

He stated that when the US and European Union, which are major trade partners of Pakistan, are facing the worst recession in recent history, how can Pakistan achieve its targets? "We are in a better position as compared to our competitors," Suleman added. Replying to a question, he said that the European Union is lifting anti-dumping duty on Pakistan from March 1, 2009 which Pakistan's bed linen industry would benefit from.

"I cannot project percentage of growth in bed linen exports after the removal of anti-dumping duty. It is up to the exporters to maximise their share in the EU market," he said. Replying to a question with regard to his recent visit to New Delhi to attend a two-day meeting of the Saarc Committee of Economic Co-operation (Saarc CEC), he said it was very fruitful.

He said that Saarc states have agreed to increase trade by 25 percent within two years through reduction in negative list and removal of non-tariff barriers under South Asian Free Trade Agreement (Safta). The meeting discussed issues such as progress in Safta, non-tariff barriers and permitting transit routes for trade with third party.

At the last summit, leaders had set up an expert group to undertake a detailed study on Safta progress and to look at the possibility of including service sectors such as insurance and banking in the system. So far, Safta has been applicable to goods only.

Commerce secretaries gave their opinion on the recommendations of the expert committee, which would be considered further at the Saarc Foreign Ministers in Colombo on February 26. India had also sought transit through Pakistan to Afghanistan, which is now a member of Saarc but this issue remained unresolved, said another official who was part of the delegation. Answering a question, Suleman said he did not discuss bilateral trade with India on the sidelines of the Saarc CEC.

 

[Neo]

10.4 percent decline in profits repatriation by foreign investors​

KARACHI (February 25 2009): Due to slackness in the economy, repatriation of profit and dividend by foreign investors declined by 54.55 million dollars, or 10.4 percent, to 471.85 million dollars during July-January of the current fiscal year 2008-09 against 526.40 million dollars of same period of last year. During the current fiscal year of the companies, which resulted in decline in the repatriation of profit.

During this period foreign investors sent 367.35 million dollars on account of return on foreign direct investment (FDI) and 104.51 million dollars on account of return on foreign private investment (FPI). During July-January of current fiscal year overall FDI stood at 2.587 billion dollars.

Only 12 sectors out of 36 sectors showed increase in the repatriation of profit, while remaining sectors depicted downtrend. Major share of repatriation of 114.9 million dollars was registered in power sector against 101.8 million dollars of last fiscal year, depicting an increase of 13 percent.

Petroleum refining was second with 71.3 million dollars against 51.4 million dollars of last year, showing an increase of 39 percent. Food packaging, leather and leather products, machinery, construction and social services sectors showed 100 percent decline in the repatriation.

Repatriation from communication declined by 70 percent to 24.9 million dollars. State Bank statistics show that foreign investors repatriated 60.1 million dollars from oil, gas and exploration sector, 45 million dollars from trade, 32 million dollars from financial sector and 24.4 million dollars from the beverages sector. In addition, 18.3 million dollars were sent from food, 15.1 million dollars from tobacco and cigarettes, 10 million dollars from chemical sector and about 6 million dollars from fertiliser.

 

[Neo]

OGDCL saves $4.850m by controlling flow of well at Dhokak ​

ISLAMABAD (February 25,2009): Oil and Gas Development Company Limited (OGDCL) effectively succeeded to trap uncontrolled flow of a deep well at Dhodak occurred during drilling operation at 819 meter.

The professionals of the Company controlled the deep well no.2 within two weeks period and set a precedent and made history that such high risk job could be performed by using indigenous resources, a spokesman said here on Wednesday.

He said the company consequently saved millions of foreign exchange by deploying its expertise to control the flow.

Giving details, he said drilling operation was in progress at Dhodak Deep Well No. 2 when mud loss was observed and uncontrolled flow occurred.

Immediate arrangements were made to save the human life property and no body was reported hurt injured at site. The public and private properties also remained safe in the vicinity.

The Head Office immediately called an emergency meeting of Senior Management for taking appropriate actions to control the Well and in this regard, a report was forwarded to Director General Petroleum Concession (DGPC), Chief Inspector Mines and other concerned departments.

The Managing Director and CEO of OGDCL constituted a task force at Head Office and team for well control at Dhodak Deep Well No. 2 to respond the emergency situation.

The Taskforce started work to acquire Well Control Services from abroad. OGDCL's team proceeded to Well location immediately. Various well control companies were contacted for initial assessment of the situation and to advise the operation and services required with the cost estimates, assessment were made by the experts at Dhodak Field.

The OGDCL team prepared a plan for Well Control and its capping meanwhile bidding process was initiated and subsequently three companies forwarded their bid proposals.

A foreign company quoted lump sum US$ 4.850 million utilizing hundred percent contract resources and three weeks time period after arrival of their equipments at the field from different destinations abroad.

The OGDCL resources for well killing operations were mobilized to Dhodak Deep-2 from other locations.

The Company's team did cementing services successfully executed the well control and cementing job.

The well has been controlled and cemented without any minor injury report. It is indeed matter of great satisfaction that Operator and Contractor Companies have observed all the obligations to claim adequate amount of loss adjustments in this particular case.

 

[Neo]

British investors to stay in Pakistan: Brinkley​

KARACHI (February 25 2009): The United Kingdom on Tuesday assured that over 100 British companies operating in Pakistan would not pull out their investment from the country, which sees the flight of capital as one of its major concerns in the backdrop of global economic recession.

Moreover, a British business delegation, led by Chairman, Pakistan British Trade and Investment Forum and Pakistani High Commissioner to UK, is due in Islamabad this year to evaluate the trade and investment climate here and facilitate and promote Foreign Direct Investment into the country.

The assurance came from British High Commissioner to Pakistan Robert Edwards Brinkley CMG in his address on "Trade and Investment: The New Context" to the English Speaking Union (ESU) at a local hotel.

"One of the major concerns expressed to us is the flight of capital from Pakistan as some investors realised their profits and left the market," but "our investment figures and our overall involvement demonstrate that this is not the case with British investors," he added.

Brinkley said: "we are here for long term and are confident that Pakistan remains a profitable place to do business. Pakistan has great future with much to offer. In particular the possibility of harnessing the country's links with Central Asia is under-developed," he said adding that his side would do its best to assist Pakistan in this effort.

The British official said his government would keep encouraging new UK firms to enter the Pakistani market, especially in areas, such as financial services, power, sources of alternative energy, IT and telecom, textiles, infrastructure development, education and training.

"We would ensure that UK companies and London Stock Exchange are aware and take advantage of the continuing privatisation process and private sector expansion," in Pakistan, he added.

Terming his country one of Pakistan's major partners in trade and investment, Brinkley said his side would work towards a financial services seminar in London later this year to follow up to the Lord Mayor of London's visit to Islamabad in 2007. Also, the Chairman of Alternative Energy Board and at least 12 Pakistani firms would visit Britain sometime this year to see how London was addressing the issue of alternative energy sources, besides finding ways for mutual trade and investment, he said.

Brinkley said a roundtable and business seminar, to be jointly organised by Britain and Pakistani High Commission in UK would bring the Pakistani and British companies together in Manchester in March.

He also assured Islamabad that despite pressures on public expenditure, his government had no intention to reduce the promised £480 million development assistance to Pakistan over the next three years. "With over 100 British Companies operating in Pakistan, the UK is and will likely to remain one of Pakistan's major partners in trade and investment," said the British official.

Dwelling upon various features of the ongoing global economic slowdown and London's resilient response to financial crisis, Brinkley warned against protectionism, which he said, was a short-term measure and may not be favourable in the long run. A plaque was also presented to the British High Commissioner by ESU President Naveed A Khan.

 

[Neo]

Zardari's China visit a milestone for development​

ISLAMABAD (February 25 2009): Minister for State for Parliamentary Affairs, Mehreen Anwar Raja has termed the visit of President Asif Ali Zardari to China a milestone for the socio-economic development of Pakistan. In a press release she said that the agreement signed between the two countries for the co-operation in Hydle Power Generation would help Pakistan to overcome energy crisis in the country.

The Minister of State said Pakistan Peoples Party has always served for the development and prosperity of Pakistan. The founder Chairman of Pakistan Peoples Party, Shaheed Zulfiqar Ali Bhutto and his daughter Mohtarma Benazir Bhutto Shaheed built such a historic ties with China which resulted visible change in various fields, particularly in the field of power generation in Pakistan. She said China has been our time tested friend and visit of President Asif Ali Zardri will further enhance the already cordial and friendly relationship between the two countries.-

 

[Neo]

Businessmen invited to set up industrial units in AJK​

KARACHI (February 25 2009): Prime Minister of Azad Kashmir, Sardar Muhammad Yaqoob Khan has invited business community to visit Kashmir to see the existing investment opportunities and make plan to establish industrial units. Addressing members of Karachi Chamber of Commerce and Industry (KCCI) on Tuesday.

He said that Kashmir is the most peaceful area in the region and offers lucrative investment opportunities in power generation and tourism in particular and other areas in general. He said that the government of Azad Kashmir has established industrial zone, which have all basic infrastructure. Referring to electric power shortage and prolonged power outage in Pakistan, the Prime Minister said that Azad Kashmir could produce 10,000 MW and is ready to supply electricity to Pakistan. Work on establishing 1000 MW power plant is in progress, he added.

He offered business community to participate in infrastructure development on BOT bases. Yaqoob informed that he will soon visit various countries of the world and persue Kashmiris, working abroad to invest in Azad Kashmir and establish industrial units

The Prime Minister said that the government of Azad Kashmir intends to develop the state as model state in collaboration with Pakistan. Replying to a question , he assured that compete audit will be conducted of relief goods and amounts receive for earthquake victims. He thanked president Asif Ali Zardar for releasing of long stuck Rs 25 billion, allocated for Muzaffarabad University. Work on university project is in progress in collaboration with a Chinese company, he informed

Acting President of KCCI, Muhammad Jawed Bilwani emphasised the need for encouraging investors to establish forest-based industry in Azad Kashmir. He said that opportunities exist for establishing match industries, paper units, furniture and handicraft units in Azad Kashmir.